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Period: to
Important Figures in Global Economics
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Adam Smith
(baptised 16 June 1723 – died 17 July 1790 [OS: 5 June 1723 – 17 July 1790 Adam Smith called for the end to Maercantilis and to the move to a global free and inclusive market -
David Ricardo
classical economists (19 April 1772 – 11 September 1823) Comparitive Advantage Against Mercantilism For Specialization - do what you are good at. -
Nathan Mayor Rothschild
(16 September 1777 – 28 July 1836) was a London financier and one of the founders of the international Rothschild family banking dynasty. Supporter of the: •Gold Standard
• World trade
• International Investment -
Friedrich List
Friedrich List August 6, 1789 – November 30, 1846 • Infnat Industries will not be efficient in the beginning, but will become competitive over time and then protection can be removed -
John Maynard Keynes
5 June 1883 – 21 April 1946
He was the worlds best known economist
• felt that the reparations against Germany after WWI was immoral.
• He argued that governments should act to stabilise wages and prices, rather than passively wait for them to adjust.
• He opposed putting the sterling back on the Gold Standard - He lost the battle but won the war
• Called the Gold Standard a "barbarous relic"
• thought to be responsible for some aspects of Social Democracy - fiscal policy of goverment spending -
John Maynard Keynes - Social Democracy
His role in Social Democracy: • By late 1930's Social Democracy wasin place and Italy and Germany were the only two advanced industrialized nations to turn away from democracy. • It seemed that Keynesian ideas triumphed.
• argued that deficit spending was essential to reactivate stagnant economies.
• Countercyclical fiscal policy - deficit spending - could alter expectations and get the economy going. -
Dr. Hjalmar Horace Greeley Schacht
(22 January 1877 – 3 June 1970) was a German economist, banker, liberal politician, and co-founder of the German Democratic Party. He served as the Currency Commissioner and President of the Reichsbank under the Weimar Republic. He was a fierce critic of his country's post-World War I reparation obligations. •Schacht Plan inactaed:
- sent half a million unemployed to community chores
- government cut wages
- tax and loan relief
- National Socialism introduced in Germany
• took 3 years -
Heckscher and Ohlin
Heckscher–Ohlin model Expanded on the Ricardian - Comparative Advantage It builds on David Ricardo's theory of comparative advantage by predicting patterns of commerce and production based on the factor endowments of a trading region. The model essentially says that countries will export products that utilize their abundant and cheap factor(s) of production and import products that utilize the countries' scarce factor(s)
